Finance Minister Joe Oliver said Tuesday that Brazil and Korea’s stock exchanges have qualified as designated stock exchanges in Canada.
Canadian investors are increasingly looking to foreign securities listed on foreign stock exchanges for return enhancement and portfolio diversification, as part of their savings objectives.
The addition, effective Oct. 31, of Brazil’s BM&F Bovespa Stock Exchange and Korea’s Korea Exchange (KOSPI and KOSDAQ) provides Canadians with more investment options for their Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs).
The current process is a three-tiered system that includes designated stock exchanges, recognized stock exchanges and stock exchanges. Designation status is particularly important for RRSP investors, as securities listed on designated exchanges are eligible to be held in RRSPs. They are also eligible investments for TFSAs and other registered plans.
“Canadians should have access to a broad range of investment options that best suit their needs, particularly when it comes to important savings vehicles like RRSPs and TFSAs. Canadians can be confident that these securities, to which they now have access, are traded on well-governed, regulated and transparent markets,” commented Oliver.
A complete list of designated stock exchanges is available on the Department of Finance’s website.